Mario Gabelli

Mario Gabelli

Last Update: 2014-07-31

Number of Stocks: 839
Number of New Stocks: 52

Total Value: $18,526 Mil
Q/Q Turnover: 3%

Countries: USA
Details: Top Buys | Top Sales | Top Holdings  Embed:

Mario Gabelli Watch

  • Mario Gabelli Comments on Xylem Inc

    Xylem Inc. (XYL) (0.8%) (XYL - $39.08 - NYSE) is a global leader in the design, manufacturing, and application of highly engineered technologies for the transportation, treatment, and testing of water. The company is expected to benefit from favorable long term fundamentals in the water industry driven by scarcity, population growth, aging of the infrastructure, and the need to improve water quality. Further, with a large installed base of pumps and systems, the company is well positioned to increase aftermarket revenue, which currently represents roughly 40% of total revenues. Xylem’s attractive business mix also generates strong cash flow, which is expected to support acquisitions, debt service, and dividend growth. The company recently appointed a new CEO, Patrick Decker, who has experience in the water industry and is looking to expand geographically as well as sustainably improve operating performance.

    From Mario Gabelli (Trades, Portfolio)’s The Gabelli Asset Fund Second Quarter 2014 Shareholder Commentary.  


  • Mario Gabelli Comments on Vivendi SA

    Vivendi SA (0.4%) (VIV) (VIV - $24.47 - NYSE) is a French media and telecommunications holding company in the late stages of a decade long transition. In April 2014, the company announced it had reached an agreement to sell its French wireless operation, SFR, to French cable operator Numericable. Over the last year, the company also sold most of its 62% stake in Activision Blizzard and reached an agreement to sell its entire 53% stake in Maroc Telecom SA. After closing the SFR sale in early 2015, Vivendi will be a more focused media firm, consisting of Canal+ (a Francophone focused pay television network owner and distributor), Universal Music Group (UMG), the number one recording music company and number two music publishing entity in the world, and GVT, a fast growing Brazilian broadband and pay television provider. We expect GVT to eventually be sold and would not dismiss the possibility of a breakup of Canal+ and UMG. While operating conditions have been challenging in most of Vivendi’s businesses, it appears their trajectory is finally turning more positive and should be supported by a healthier balance sheet after the SFR, Activision and Maroc disposals.

    From Mario Gabelli (Trades, Portfolio)’s The Gabelli Asset Fund Second Quarter 2014 Shareholder Commentary.  


  • Mario Gabelli Comments on UnitedHealth Group Inc

    UnitedHealth Group Inc. (UHS) (0.2%) (UNH - $81.75 - NYSE) is the largest and most diverse health care company in the United States. United insures over forty million people around the world, but also provides over $40 billion worth of technology, pharmacy benefits management, and other care services through its Optum division. The company has successfully navigated the changes required by the Affordable Care Act and is winning new business in state Medicaid programs and in a limited number of state exchanges. UnitedHealth is also finding new growth internationally, especially in Brazil where the company now serves over four million people.

    From Mario Gabelli (Trades, Portfolio)’s The Gabelli Asset Fund Second Quarter 2014 Shareholder Commentary.  


  • Mario Gabelli Comments on Twenty-First Century Fox Inc

    Twenty-First Century Fox Inc. (FOXA) (2.2%) (FOXA - $35.15 - NASDAQ; FOX - $34.23) is a diversified media company, with operations in cable network television, television broadcasting, filmed entertainment, and direct broadcast satellite television. Cable networks account for 66% of the company’s EBITDA and benefit from contractually recurring affiliate fees and exposure to the fast-growing global pay television market. We also expect the company to benefit from rising demand for premium content, driven by emerging distribution platforms such as Netflix, retransmission revenue, and aggressive share repurchases.

    From Mario Gabelli (Trades, Portfolio)’s The Gabelli Asset Fund Second Quarter 2014 Shareholder Commentary.  


  • Mario Gabelli Comments on Time Warner Cable Inc

    Time Warner Cable Inc. (TWC) (0.3%) (TWC - $147.30 - NYSE) is the second largest cable operator in the U.S., with 11 million subscribers located primarily in New York City, Los Angeles, the Carolinas, and the Midwest. The company was spun-off from Time Warner in March 2009. After several strong years of growth and shareholder returns, the company encountered customer service and competitive challenges in late 2012 which left it vulnerable to takeover. Indeed, Charter Communications (less than 0.1%), backed by Liberty Media (0.7%), attempted on several occasions to acquire the company in 2013. Finally in February 2014, Comcast (0.7%), the largest cable operator in the U.S., agreed to acquire TWC in an all stock transaction. Charter subsequently agreed to effectively split TWC with Comcast, making it a better transaction for all involved. While the proposed deals have been criticized in the press, we expect it to close early in 2015.

    From Mario Gabelli (Trades, Portfolio)’s The Gabelli Asset Fund Second Quarter 2014 Shareholder Commentary.  


  • Mario Gabelli Comments on Ryman Hospitality Properties Inc

    Ryman Hospitality Properties Inc. (RHP) (less than 0.1%) (RHP - $48.15 - NYSE) is a Nashville, Tennessee based REIT that owns convention hotels in Nashville, Tennessee; Orlando, Florida; Dallas, Texas; and Washington, D.C. Other assets include the iconic Opryland, the famous Ryman Auditorium, the General Jackson Showboat, Gaylord Springs Golf Links, and Nashville based radio station WSM-AM. RHP recommended changes to property manager Marriott, which included deploying additional sales staff at the property and regional sales office levels and educating and incentivising Marriott’s sales team to highlight the uniqueness and complexity of the Gaylord properties. These changes are showing early traction in the form of strong bookings. The company also continues to see robust transient room night production, benefiting from Marriott’s strong distribution system. Finally, as the leading country music entertainment brand, a potential spin-off of the Opry segment, including the Grand Ole Opry, also remains a significant catalyst for RHP shares.

    From Mario Gabelli (Trades, Portfolio)’s The Gabelli Asset Fund Second Quarter 2014 Shareholder Commentary.  


  • Mario Gabelli Comments on Rolls-Royce Holding PLC

    Rolls-Royce Holding PLC (LSE:RR.) (1.0%) (RR - $18.29 - U.K.-LONDON) provides jet engines, power and propulsion systems, and services to commercial aviation, defense, marine, oil and gas, and other industries. RR has leading engine positions as the sole supplier on the Airbus A350 and one of two suppliers on the Boeing 787 Dreamliner, two new wide body programs with healthy backlogs to be delivered over the next decade. A re-engining of the A330 could extend one of Rolls’ most profitable engine programs. Engine deliveries lead to recurring, higher margin parts and service revenues, which benefit the company more than twenty years after new engines are delivered. In year-end 2013 results, Rolls-Royce surprised investors with 2014 guidance that called for a marked falloff in defense revenues and slower than expected improvement in civil aerospace margins. Notwithstanding near-term headwinds, we believe that over the next decade RR will see substantial growth in its civil aerospace operations, accompanied by improved margins approaching the levels of its peers. Recent portfolio changes have been positive, including the announced two billion GBP acquisition of Daimler’s 50% interest in Rolls-Royce Power Systems and the one billion sale of the energy aero-derivative gas turbine business to Siemens. The company’s modest debt levels provide balance sheet optionality for additional investments.

    From Mario Gabelli (Trades, Portfolio)’s The Gabelli Asset Fund Second Quarter 2014 Shareholder Commentary.  


  • Mario Gabelli Comments on Hillshire Brands Co

    Hillshire Brands Co. (HSH) (0.9%) (HSH - $62.30 - NYSE), formerly the Sara Lee Corp., completed the spin-off of D.E Master Blenders 1753 and paid a $3 cash dividend to shareholders on June 28, 2012. As a result, shareholders received one share of the North American meat company, renamed Hillshire Brands (HSH), which subsequently underwent a reverse split of 1-for-5. Hillshire Brands is a concentrated meat and bakery business in the U.S., generating an estimated $4 billion of revenue. It is the leading player in categories such as protein breakfast, breakfast sausages, and hot dogs under the Jimmy Dean, Hillshire Farm, and Ball Park brands. On July 2, 2014, following a bidding war between Tyson Foods and Pilgrim’s Pride and the termination of the Hillshire agreement to acquire Pinnacle Foods, which was previously announced on May 12, 2014, Hillshire announced it agreed to be acquired by Tyson Foods for $63 per share in cash. The transaction is expected to be completed by the end of September 2014.

    From Mario Gabelli (Trades, Portfolio)’s The Gabelli Asset Fund Second Quarter 2014 Shareholder Commentary.  


  • Mario Gabelli Comments on DIRECTV

    DIRECTV (DTV) (1.7%) (DTV - $85.01 - NASDAQ) is the largest pay TV provider in the world, with over twenty million subscribers in the U.S. and over twelve million throughout Latin America. Originally part of General Motors, DTV used its technological advantage, focus on high income customers, recognition of the necessity for superior customer service, and clever (Sunday Ticket) participation in exclusive sports programming to cement its position in the U.S. The company used essentially the same strategy in Latin America, where it is benefiting from the growth of the middle class in countries such as Brazil and Colombia. Atop a superior operating business, DTV has layered a capital structure that maximizes equity returns. The company has used modest leverage to repurchase stock, in the process cutting its shares outstanding by more than half over the last five years. Long of interest to its telecom distribution partners, AT&T agreed to acquire the company in April 2014 for $95 per share in cash and stock. We expect the transaction to be approved and close early in 2015.

    From Mario Gabelli (Trades, Portfolio)’s The Gabelli Asset Fund Second Quarter 2014 Shareholder Commentary.  


  • Mario Gabelli Comments on Diebold Inc

    Diebold Inc. (DBD) (0.3%) (DBD - $40.17 - NYSE) is a global leader in the manufacturing and servicing of ATM machines. It also provides security systems and services, primarily to the financial, commercial, government, and retail markets worldwide. In June 2013, Diebold appointed former Hewlett-Packard (0.2%) and Siemens executive Andy Mattes as its new CEO to lead a restructuring and turnaround of its operations. Andy, along with newly recruited leaders, has shown early signs of success, reducing the size of the workforce, freeing up working capital, and moving to standardize business practices globally to drive efficient operations. Returning margins to historical and peer levels should enable substantial upside for Diebold. At the same time, Diebold is positioning itself to benefit from a wave of global bank branch automation, whereby high tech ATMs capable of handling advanced transactions replace tellers. Diebold is also focused on higher margin growth opportunities including the servicing of ATMs, a broader commercial security presence across verticals, and software as a service (SAAS). Altogether, we see Diebold as capable of doubling earnings over the next four years, while continuing to support a strong dividend.

    From Mario Gabelli (Trades, Portfolio)’s The Gabelli Asset Fund Second Quarter 2014 Shareholder Commentary.  


  • Mario Gabelli Comments on Davide Campari-Milano SpA

    Davide Campari-Milano SpA (MIL:CPR) (0.2%) (CPR - $8.65 - ITALY-MILAN) is a leading beverage company headquartered in Sesto San Giovanni, Italy. The company was founded in 1860, and today is the sixth largest player worldwide in the premium spirits industry. The company’s portfolio consists of over fifty brands and spans spirits (the core business), wines, and soft drinks. The company owns many niche brands including Aperol, Appleton, Campari, Cinzano, SKYY Vodka, and Wild Turkey. Campari’s growth strategy aims to combine organic growth through strong brand building with shareholder value enhancing acquisitions, focusing on strong, niche brands that will enhance the company’s critical mass in key markets. In June, 2014, the company acquired Forty Creek Distillery, a leading producer of Canadian whisky, as well as Fratelli Averna S.p.A., owner of the leading Italian bitters brand Averna.

    From Mario Gabelli (Trades, Portfolio)’s The Gabelli Asset Fund Second Quarter 2014 Shareholder Commentary.  


  • Mario Gabelli Comments on Dana Holding Corp

    Dana Holding Corp. (DAN) (0.4%) (DAN - $24.42 - NYSE) is a Maumee, Ohio based supplier of axles, drivelines, and thermal products for the automotive and trucking industries. Dana’s new CEO, Roger Wood, has begun to emphasize the company’s strong technological expertise in thermal management technology, including advanced battery cooling products for next generation vehicles. Additionally, the company is beginning to reap the benefits of efforts to improve customer pricing as well as internal manufacturing efficiencies, both of which are expected to improve margins amid robust demand in the company’s core auto and trucking markets.

    From Mario Gabelli (Trades, Portfolio)’s The Gabelli Asset Fund Second Quarter 2014 Shareholder Commentary.  


  • Mario Gabelli Comments on Chemtura Corp

    Chemtura Corp. (CHMT) (0.1%) (CHMT - $26.13 - NYSE) is a global developer, manufacturer, and marketer of engineered specialty chemicals. Its products are used as additives, ingredients, or intermediates serving major industries such as agriculture (being sold), building and construction, energy, electrical and electronics, transportation, and general industrial. Since its emergence from Chapter 11 in November 2010 under the leadership of Craig Rogerson, the management team has focused on actively managing its portfolio via investments in three vertical markets (transportation, electronics and energy, and agriculture), while monetizing businesses with below-target long term potential. Management announced the sale of AgroSolutions to Platform Specialty Products (PAH) for $950 million in cash and two million shares of PAH worth $53 million at today’s price of $26.65 for a total consideration of $1 billion, which is at the low end of our expectations of $1 - $1.1 billion. The transaction is expected to close before year-end and will generate net proceeds estimated at $690 million which will be used for share repurchase, including the monetization of PAH within one year of closing and net of debt reduction of $200 million. Combined with the net proceeds from the sale of Consumer Products, we estimate that Chemtura will repurchase approximately 33 million shares, lowering its outstanding shares to 65 million by year-end 2015. Investments in the remaining businesses and potential bolt-on acquisitions will be financed with cash flow from operations. The remaining operations, Industrial Performance Products (petroleum additives and urethanes), and Industrial Engineered Products (bromine and flame retardants and organometallics) are expected to grow revenues via innovations, share gain, and geographic expansion, while the bottom line will benefit from internal actions. In addition, market demand for flame retardants used in electronics and insulation foam applications is showing signs of improvement. We estimate that the “new Chemtura” (exclusive of consumer and agriculture) will generate EPS of $1.45 and $1.85 in 2015 and 2016, respectively. The EPS calculation is based on the already mentioned decline in the shares outstanding. We calculate PMVs of $31 and $40 for 2015 and 2016, respectively.

    From Mario Gabelli (Trades, Portfolio)’s The Gabelli Asset Fund Second Quarter 2014 Shareholder Commentary.  


  • Mario Gabelli Comments on Brown-Forman Corp

    Brown-Forman Corp. (BF.A, BF.B) (1.6%) (BF/A - $92.34 - NYSE; BF/B - $94.17) is a leading international distilled spirits producer. Distilled spirits is an advantaged category that enjoys high margins, low capital requirements, strong free cash flow generation and good pricing power. The company’s renowned global brands include Jack Daniel’s Tennessee whiskey, Southern Comfort, Finlandia vodka, Woodford Reserve bourbon, and el Jimador and Herradura tequilas. Jack Daniel’s is one of the world’s most valuable spirits brands, enjoying strong growth both in the U.S. and internationally as consumers increasingly choose to drink American whiskies. The company grew net sales by 6% and earnings per share by 11% in fiscal 2014, and expects continued strong growth (6% - 8% top line, 9% - 11% bottom line) in fiscal 2015. In addition to strong financial prospects near and medium term, Brown-Forman may at some point be a takeover candidate in this increasingly consolidating industry.

    From Mario Gabelli (Trades, Portfolio)’s The Gabelli Asset Fund Second Quarter 2014 Shareholder Commentary.  


  • Mario Gabelli Comments on AMETEK Inc

    AMETEK Inc. (AME) (1.7% of net assets as of June 30, 2014) (AME - $52.28 - NYSE) is a leading global manufacturer of analytical instruments for the process, aerospace, and industrial markets, and a leading producer of electric motors and blowers for the floor care and outdoor power equipment markets. In the near term, the company continues to experience significant growth in its longer cycle businesses in the aerospace, power generation, and process industries. Longer term, the company continues to make acquisitions to augment growth. In the Electronic Instruments Group, AMETEK expects one half to two thirds of its revenue growth to come from acquisitions. The company is focused on acquiring differentiated businesses with revenues of $30-$100 million. Differentiated businesses compete on the basis of product capability, have higher growth rates, and offer superior returns. In the Electromechanical Group, AMETEK’s key strategy is to reduce costs by increasing efficiency and moving noncore operations to low cost countries such as Mexico, the Czech Republic, and China.

    From Mario Gabelli (Trades, Portfolio)’s The Gabelli Asset Fund Second Quarter 2014 Shareholder Commentary.  


  • The Gabelli Asset Fund Second Quarter 2014 Shareholder Commentary

    To Our Shareholders,


    For the quarter ended June 30, 2014, the net asset value (“NAV”) per Class AAA Share of The Gabelli Asset Fund increased 4.3% compared with an increase of 5.2% for the Standard & Poor’s (“S&P”) 500 Index. See page 2 for additional performance information.

      


  • Mario Gabelli Comments on Wells Fargo & Co

    Wells Fargo & Co. (WFC) (1.7%) (WFC - $52.56 - NYSE) is a diversified financial services company. Headquartered in San Francisco, California, the firm provides banking, insurance, investments, mortgage, and consumer and commercial finance through more than 9,000 stores and 12,000 ATMs. Wells Fargo serves one in three households in America, and as of December 31, 2013, it had $1.5 trillion in customer assets. Longer term, we expect Wells Fargo to continue to grow market share of domestic deposits due to its strong brand and diversified product base.

    From Mario Gabelli (Trades, Portfolio)’s The Gabelli Equity Income Fund Second Quarter 2014 Shareholder Commentary.  


  • Mario Gabelli Comments on Weatherford International Ltd

    Weatherford International Ltd. (WFT) (1.2%) (WFT - $23.00 - NYSE), based in Houston, Texas, finally resolved its tax accounting problems and various government investigations, which had been on-going for several years. It is now focused on growing its core businesses, enhancing profitability, reducing leverage and improving capital efficiency. The company is targeting total segment operating profit margin to reach 20% by 2016 from 11.3% in 2013 and reducing debt to capitalization from 52% to 25%. It aims to realize $500 million in annualized cost savings and sell four non-core businesses. Also, Weatherford plans to spin off a portion of its international drilling rig business by the end of 2014 or early 2015. All available free cash flow generated and proceeds from asset sales will be used to reduce debt.

    From Mario Gabelli (Trades, Portfolio)’s The Gabelli Equity Income Fund Second Quarter 2014 Shareholder Commentary.  


  • Mario Gabelli Comments on Viacom Inc

    Viacom Inc. (VIA) (0.9%) (VIA - $86.75 - NASDAQ) is a pure-play content company that owns a global stable of cable networks, including MTV, Nickelodeon, VH1, BET, and the Paramount movie studio. Viacom’s cable networks generate revenue from advertising sales, fixed monthly subscriber fees, and ancillary revenue from toy licensing, etc. The company benefited from a cyclical rebound in advertising and a shift in audience from broadcast networks to cable. Paramount has posted a series of box office successes, with franchises such as Star Trek, Iron Man, and Transformers. Supported by its strong results and outlook, the company expects to repurchase $6.5 billion of stock over the next two years.

    From Mario Gabelli (Trades, Portfolio)’s The Gabelli Equity Income Fund Second Quarter 2014 Shareholder Commentary.  


  • Mario Gabelli Comments on Verizon Communications Inc

    Verizon Communications Inc. (VZ) (0.7%) (VZ - $48.93 - NYSE) is one of the world’s leading telecommunications services companies. On February 21, 2014, VZ completed the acquisition of Vodafone’s (0.2%) 45% indirect interest in Verizon Wireless, which was valued at approximately $130 billion. The deal is expected to be immediately accretive to Verizon’s earnings per share by approximately 10%, excluding any non-operating adjustments. Verizon Wireless (VZW) is the largest mobile operator in the U.S. with 103 million retail customers. Verizon expects this transaction to enhance value across platforms and allow the company to operate more efficiently, with continued focus on producing more seamless and integrated products/solutions for its customers. Management believes that full ownership of Verizon Wireless will provide increased opportunities in the enterprise and consumer wireline markets. In April 2014, VZ reported stronger than expected first quarter of 2014 consolidated revenues and EBITDA (driven by wireless outperformance) and reiterated its guidance for top line growth of 4% and adjusted consolidated EBITDA margin expansion in 2014.

    From Mario Gabelli (Trades, Portfolio)’s The Gabelli Equity Income Fund Second Quarter 2014 Shareholder Commentary.  


Add Notes, Comments or Ask Questions

User Comments

Jaumepared
ReplyJaumepared - 3 weeks ago
I am curious how Gabelli small cap picks do in general. Anybody have any feedback?
JEANRSMITH1@GMAIL.COM
ReplyJEANRSMITH1@GMAIL.COM - 1 month ago
Kennethmall,
How is a company rated?
JEANRSMITH1@GMAIL.COM
ReplyJEANRSMITH1@GMAIL.COM - 1 month ago
What is your opinion of Markel?Is this stock overpriced?
Tomser
ReplyTomser - 8 months ago
what kind of tools he use to pick wining stcks



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